RevenueCat

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Channel • 2 Shows

Technology

Technology

Every two weeks
Technology

Technology

Twice monthly

18 MAR

Bootstrapped to $6.7M ARR and an Exit to Quizlet in 2 Years – Brett Bauman & Zack Hargett, Coconote

On the podcast: about hitting $1M ARR in four months with no paid ads, why trial extensions beat discounts for saving cancellations, and why you should be hiring content creators, not influencers. Top Takeaways: 📈 Momentum is oxygen — get to revenue fast Reaching your first dollars quickly, even with a minimal product, creates a flywheel of confidence and capital that compounds over time. 🎯 Frame your product as a solution, not a toy Content that positions your app as the answer to a real problem converts; content that makes it look fun and novel does not. 🤝 Hire content creators, not influencers Follower counts are irrelevant in the age of algorithmic distribution. Look for creators with 5K followers and a Gmail address, avoid influencers repped by an agency. ⏳ Trial extensions beat discounts for saving cancellations When a user tries to cancel during a free trial, offering more time converts better than offering a lower price, and it avoids devaluing your product. 🚪 Move login to after the paywall Forcing account creation before users have experienced any value is a silent conversion killer. Removing it from the front of onboarding can cut drop-off by 10% or more. About Brett Bauman & Zack Hargett: 🚀Brett Bauman & Zack Hargett, Co-founders, Coconote, an AI-powered note-taking app revolutionizing how students engage with lectures. 👋 Brett Bauman LinkedIn 👋 Zack Hargett LinkedIn 💬Brett on X - @brttbmn 💬Zack on X- @zackhargett 🖥️ Quizlet website 📩 Quizlet careers Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights:[0:00] Introducing Coconote: The AI note-taking app that scaled to millions in ARR[2:15] The founding insight: Why students desperately needed better notes[5:05] Launch momentum: Hitting $100K ARR in the first 45 days[7:40] From idea to $1M ARR in just four months[10:12] Why most founders misunderstand marketing early on[12:31] The key distribution insight: Where your customers actually spend time online[15:22] Creator marketing vs influencer marketing: Why the difference matters[18:05] How short-form content became Coconote’s primary growth engine[21:40] Turning viral attention into real revenue with better messaging[24:25] Premium pricing for students: Why Coconote charged $99+ per year[27:11] Building trust when your product affects exams and grades[30:03] Improving conversions: The onboarding experiments that increased trial starts[33:20] Removing friction: Why login moved after the paywall[36:05] Retention lessons: Why trial extensions beat discounts[39:00] The psychology behind cancellations and keeping users subscribed[42:10] Managing explosive growth while keeping the team small[45:35] Acquisition conversations with Quizlet begin[48:10] Keeping acquisition talks confidential while running the company[51:05] The emotional moment when the acquisition finally closed[54:01] Reflecting on the journey from scrappy startup to exit[56:22] Final lessons for founders building AI products today

18 Mar

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1hr 6min
10/12/2025

Pivots, Funding, and Building Apps That Last – Greg Cohn, Burner

On the podcast, I talk with Greg about knowing when to pivot, why most consumer apps shouldn't raise VC, and why making free trials optional outperformed making them the default. Top Takeaways: 📉 Know When to Pivot Wrangle struggled because it wasn’t solving a real problem. Burner succeeded because it met a clear need. Don’t be afraid to pivot when the product isn’t working. 💭Most Consumer Apps Don’t Need VC Venture capital can be a blessing but also a curse. If you attract investment that doesn’t line up with your product vision or culture, the cash injection can turn out to be a costly mistake. Building a business that pays for itself is a better fit for most founders. 🔑 Focus on Retention Success is about keeping users, not just acquiring them. Burner’s ability to retain users, even short-term ones, proved its value. If users keep coming back, you’ve found something meaningful. 🛠 Trials, Errors, WinsTesting was crucial to Burner’s growth. Every experiment was a learning opportunity. Don’t guess—test continuously, especially pricing, to find what drives retention and revenue. 🎯 Small Changes, Big Results Minor tweaks, like switching to a free trial, led to significant growth. Optimize for retention with quick, simple changes. Even minor adjustments can have a substantial impact on results. About Greg Cohn: 🛫 Founder and CEO of Ad Hoc Labs 📱 Greg Cohn is the founder of Burner, the leading mobile app for managing personal privacy through disposable phone numbers. With a passion for solving real-world problems, Greg transitioned from an early startup failure to building a successful business that prioritizes user privacy, simplicity, and seamless functionality. 👋 LinkedIn 💬 Text Greg’s Burner: (323) 579-1830🧑‍💻 Open Roles at Ad Hoc Labs (Mention “Sub Club” to get a closer look at your resume.) Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights: [0:00] The concept behind Wrangle, Greg’s first app [1:39] Twilio’s role in developing Wrangle and early challenges [3:24] Burner’s breakthrough with the “burner” feature for privacy [9:42] Wrangle’s pivot and what went wrong [13:36] Moving from paid downloads to a subscription model for Burner [24:47] Importance of user feedback in shaping the Burner product [33:24] The credit system and why it transitioned to subscriptions [38:55] Why retention and cohort analysis are key to Burner’s success [44:29] How Burner integrates new features like VPN for growth [54:33] Premium tier features: phone number lookup becomes popular [1:02:18] Bundling products: the decision to expand Burner’s offerings [1:09:53] Greg’s thoughts on acquiring apps vs building new features [1:23:38] Win of the year: faster paywall testing speed for Burner

10/12/2025

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1hr 29min
7 JAN

How a Single Paywall Experiment Generated $50M – Jeff Morris, Chapter One, Ex-Tinder

On the podcast, I talk with Jeff about Tinder's $50 million paywall win. Why now is such a great time to build apps, and how hard paywalls can mislead you about product-market fit.Top Takeaways: 💡 Focus on Product-Market Fit First Before jumping into monetization, ensure your product truly resonates with users. Building a product that solves a real problem and captures genuine interest is the foundation for sustainable growth. Once you achieve product-market fit, monetization becomes a natural extension. 🛠 Monetization Strategies Are Evolving Founders are being pushed to monetize early, but the key is to test different models and find what works for your user base. Experimenting with subscription tiers and paywalls can unlock new revenue streams while preserving a great user experience. This flexibility is crucial in today’s competitive app landscape. 🚀 Experimentation is the Key to Success The most successful apps are built through continuous experimentation and iteration. Constantly testing new ideas—whether in pricing, features, or user engagement tactics—helps you learn and adapt quickly. Fail fast, adjust, and keep pushing forward. 📊 Data-Driven Decisions Over Gut Instincts Rely on data to make smarter decisions, especially when it comes to monetization and growth strategies. Properly instrumenting your app and analyzing user behavior gives you the insights needed to refine your approach. Data-driven decisions remove the guesswork and lead to more reliable outcomes. 💬 User Feedback Drives Innovation Your users are the best source of inspiration. Listening to their feedback and adjusting your app based on real-world experience will improve your product and increase retention. The more connected you are to your community, the more likely your app will evolve in the right direction. 🔑 The Importance of Sustainable Growth Building a successful app requires more than just an initial win. To scale sustainably, it’s essential to focus on long-term user value and avoid over-monetizing too early. By balancing user experience with growth strategies, you can achieve steady, lasting success. About Jeff Morris: 🚀 Founder and General Partner at Chapter One. 📱 Jeff Morris is the former VP of Product at Tinder, where he played a key role in driving the app’s revenue and user growth. As a venture capitalist, Jeff invests in early-stage companies developing products that resonate deeply with users. His expertise spans product development, monetization strategies, and scaling businesses in competitive markets. 👋 LinkedIn 👋 Follow Jeff Morris on X - @jmj Jeff’s “controversial” X post🌎 The New Internet Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights:[0:00] Jeff Morris’ background and expertise at Tinder[2:20] Monetization vs. product building: A founder’s shift in focus[4:53] Celebrating early revenue: Real or just hype?[6:08] Freemium model: Boosting user engagement and retention[9:01] Monetization strategies across app categories[11:51] The venture landscape in 2025: Challenges & opportunities[13:05] Why it’s still a great time to build mobile apps[14:48] Creating a sustainable subscription model[17:27] Early-stage AI startups: New monetization opportunities[19:20] Tinder’s journey with pricing and packaging experiments[22:02] The success of Tinder’s three-tier subscription model[24:41] Balancing user experience with monetization[26:45] The role of testing and iteration in revenue decisions[29:40] Why revenue optimization needs constant attention[31:53] The impact of paywall features on conversion[33:54] The power of design in driving revenue and engagement[36:21] The future of mobile and AI-native apps[39:11] Scaling a mobile app in 2025: Key lessons for founders[42:45] How funding partners shape your product vision[44:21] The role of feedback loops in creative growth[47:30] What Jeff would have done differently at Tinder[50:11] Key takeaways from building and scaling a high-growth product[54:45] User-centric design: Why monetization should never come first

7 Jan

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53 min
4 FEB

How ElevenLabs Builds, Prices, and Grows AI Consumer Apps

On the podcast we talk with Tanmay and Jack about how earned media can drive paid performance, building features that make for good tweets, and why stripping out your onboarding quiz might beat optimizing it. Top Takeaways: 📊Pricing should match how users think — not how AI worksOne of the biggest wins came from simplifying pricing. For ElevenReader, selling listening time instead of tokens or credits dramatically improved clarity and conversion. Abstracting away AI complexity for consumers is not dumbing things down — it’s good product sense. 🏎️Small, autonomous “pods” enable speed to become the moat Instead of one massive org, ElevenLabs operates like 10–12 startups inside the company. Small teams with full ownership can ship fast, iterate relentlessly, and make real product decisions without waiting on heavy processes — a critical edge in fast-moving AI markets. 💸Earned media compounds — and fuels paid performance ElevenLabs treats launches as compounding assets. Each launch earns attention, which boosts branded search, improves paid efficiency, and makes future launches stronger. Growth isn’t just ads vs. organic — it’s a flywheel where story, brand, and performance reinforce each other. 🕊️Start launches with the “tweet thread,” not the featureBefore building launch assets, teams write the Twitter/X thread first. If a feature can’t be explained clearly and compellingly in a short narrative, it’s a red flag. This keeps teams focused on real user value instead of shipping “flashy but hollow” features. 🌐 Consumer apps are a strategic advantage for platform companiesElevenLabs doesn’t see consumer apps as competing with its API customers — they’re a force multiplier. Being their own best customer helps them build better APIs, understand real user needs, and strengthen brand affinity across creators, consumers, and developers. About Tanmay Jain & Jack McDermott 🚀 Mobile Growth Lead, ElevenLabs 📱 Tanmay Jain leads mobile growth for the core ElevenLabs app, focused on translating ElevenLabs’ powerful web + API capabilities into a mobile-native experience that’s simple, fast, and creative-first. He brings a founder mindset from previous roles (including Canva), and shares how ElevenLabs ships through small, autonomous pods — moving quickly, running experiments (like pricing + paywalls), and holding teams accountable to what actually improves the user experience. 👋 LinkedIn 🚀 Mobile Growth Lead, ElevenReader 📱 Jack McDermott leads mobile growth for ElevenReader, ElevenLabs’ consumer app that turns PDFs, articles, and books into lifelike audio — powered by a massive catalog of high-quality voices. He breaks down how ElevenLabs uses earned media to amplify paid performance, why launches start with the “tweet thread” narrative, and how simplifying pricing (selling listening time instead of tokens) can dramatically improve consumer conversion. 👋 LinkedIn Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights:[0:00] Why consumers won’t pay in “tokens” — they pay in outcomes [2:13] The case for building consumer apps and an API (without competing with customers) [4:10] ElevenLabs’ operating system: 10–12 “speedboat” pods shipping in parallel [7:20] The Canva spin-out lesson: award-winning product ≠ distribution or retention [12:07] Monetization that matches intent: “hours of listening” vs creator credits [13:30] Two growth modes at once: compounding earned-media launches + steady paid UA [16:27] Why earned media makes paid cheaper (branded search + trust lift) [19:30] The launch playbook: write the Twitter thread first → turn it into a video [32:20] “Speed is the moat” — and how they avoid shipping gimmicks [36:57] Don’t copy Spotify Wrapped — find your product’s natural shareable moment [43:31] ElevenReader’s “aha”: bring your own PDF/ebook + pick a voice worth sharing [56:58] Biggest fail: over-optimizing onboarding instead of testing the “strip it back” base case

4 Feb

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1hr 3min
24/12/2025

Creative Misfires, False Positives, and Meta's Auction Flaws — Alper Taner, Stealth-Mode App Studio

On the podcast, I talk with Alper about the competitive advantage of ignoring (some) best practices, the risk of drawing false conclusions when researching competitor ads, and why poor metrics are just facts until proven problematic. Top Takeaways: 📊 Challenge Best Practices Test what works for your app and market, even if it goes against common advice. Adapt best practices to your data and current stage. 💡 Facts vs. Problems Low trial conversions aren’t always a problem—sometimes they’re just a fact of your setup. Only treat them as a problem after you’ve tested and ruled out other factors. 🎯 Quality Over Quantity in Creative Testing It’s not about testing hundreds of creatives—it’s about testing fewer, but with stronger hypotheses. Focus on creative iterations that drive high success rates, not just metrics. ⚖️ Strategic Control of Spend Set guardrails and adjust bids based on performance. Test spend limits, but always maintain control over your budget and its allocation. 💬 Be Inspired Learn from competitors, but don’t mimic their exact strategies. Customize based on your own data and target audience. 🔍 Instrument Your Data RightAccurate data is key. Whether it’s MMP, in-app analytics, or creative performance, ensure you interpret results accurately to drive better decisions and scale effectively. About Alper Taner: 🚀 Head of Performance Marketing at a stealth-mode app studio. 📱 With over 10 years in mobile growth, Alper drives user acquisition and marketing tech strategies, managing 8-figure budgets. He’s known for challenging conventional marketing practices and leveraging data to fuel growth. 👋 LinkedIn Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights: [0:00] Introduction to Alper Taner and his mobile growth expertise [1:39] Why challenging best practices and testing your own data is crucial [5:04] Poor metrics are facts, not problems [8:10] Creative testing: Focus on quality and strong hypotheses, not just quantity [12:00] Set spend guardrails and control budget allocation for better results [15:30] Learn from competitors, but don’t copy their strategies blindly [19:10] Accurate data is key: instrument it right for smarter decisions [22:18] Small event mapping changes can lead to significant performance boosts [27:00] Don’t shy away from unconventional strategies [32:45] Iteration is key for creative optimization [37:20] Manage budget thresholds in creative testing to avoid overspending [41:00] Understand platform algorithms and guide them to work for you [46:00] Use guardrails and budget caps to control spend while optimizing performance [49:50] Balance risk and experimentation with data-backed decision-making [54:05] Retention and user behavior drive long-term growth [58:00] Key lessons from creative testing: Adjust based on results [1:00:30] Mixing creativity with data is the key to optimized user acquisition

24/12/2025

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1hr 3min
6 MAR

The 2026 State of Subscription Apps Report

On the podcast: what the explosion in new apps means for the market, how the top 10% of apps grew 306% while the median barely beat inflation, and why hard paywalls convert 5X better than freemium. This conversation is focused on RevenueCat’s State of Subscription Apps report. Head to https://www.revenuecat.com/state-of-subscription-apps to download the report. Top Takeaways:📊 The app economy is a sorting machine The top 10% of apps grew 306% while the median grew just 5.3%, and that gap is only widening as AI raises the ceiling for the best-positioned apps. 💰 Hard paywalls crush freemium on conversion, but context matters Hard paywalls convert five times better than freemium (10.7% vs 2.1% download-to-paid by day 35) with nearly identical year-one retention, but freemium remains the right call when free users drive word of mouth, network effects, or long-term brand scale. ⚡ Day zero is your best shot at converting a user The first session is when users decide both whether to pay and whether to stay. The majority of trial cancellations happen on day zero, meaning users who don't see value immediately rarely come back to find it. 🤖 AI apps sell, but they don't stick AI-powered apps generate 41% more revenue per customer but people churn 30% faster. Apps that solve that retention problem early will own their category; those that don't are just riding a wave of consumer curiosity. 📈 The App Store is experiencing a supply shock The number of new subscription apps launching each month has grown 7X since 2022, creating a hyper-competitive environment where distribution, not just features, is the primary barrier to success. About RevenueCat: 🚀Jacob Eiting, CEO at RevenueCat. 👋LinkedIn 🚀David Barnard, Growth Advocate at RevenueCat. 👋LinkedIn Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights:[0:27] Unpacking the key findings from the 2026 State of Subscription Apps Report[2:52] How “vibe coding” and new AI development tools have dramatically lowered the barrier to building apps[5:42] The emerging “supply shock” in the app economy as cheaper development leads to a flood of new apps competing for the same users[20:13] Breaking down the SOSA report methodology and why low-traffic apps were excluded from the dataset[21:57] Why the report separates AI apps from non-AI apps—and how AI apps tend to generate higher revenue per paying user[23:15] The explosion of new subscription apps, with launches increasing roughly 7× since 2022[25:33] Why iOS now accounts for about 77% of new subscription app launches, and what that says about platform economics[30:19] The “power law” reality of the app economy: the top 10% of apps grew 306%, while the median app barely grew[39:20] A key finding from the report: hard paywalls convert about five times better than freemium models[45:42] Trial behavior insights: over half of free-trial cancellations happen on day zero[47:40] The “billion-dollar leak” on Google Play: a large share of cancellations come from involuntary billing failures[51:21] The AI app paradox: AI apps generate higher revenue per payer but also churn faster than traditional apps[54:51] Why longer free trials appear to convert better—and why the data may reflect correlation rather than causation[1:00:54] How AI agents could change how developers analyze subscription business data

6 Mar

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1hr 6min
21 JAN

Why Your Free Users Are Your Real Growth Engine – Cem Kansu, Duolingo CPO

On the podcast, I talk with Cem about the premium trap many apps fall into, why free trials work even for freemium products, and how ‘try for $0.00’ actually outperforms ‘try for free’. Top Takeaways: 💡 Protect the free moat — always Short-term revenue tricks like paywalling free features make metrics spike — then stall. Sustainable freemium growth depends on preserving free value. It’s not just ethical; it’s strategic. Pulling back too much invites competitors to offer what you took away, weakening both your brand and your growth loop. 🧪 A/B test relentlessly — but know when to lead with intuition Testing is essential, but not infallible. With 400+ experiments running at once, you’ll often see trade-offs between revenue and user experience. The art of product management is knowing when to ignore short-term data and make the long-term call that preserves user trust and helps achieve strategic goals. 🔁 Freemium is a growth engine, not a trade-off Your free users aren’t freeloaders — they’re your marketing engine. When you improve the free experience, you strengthen organic growth through word of mouth. Growth slows when you nickel-and-dime; it compounds when you delight. 💰 Monetize with empathy, not extraction Introducing monetization requires a cultural shift. The key is measuring everything — retention, reviews, complaints per DAU — and optimizing for user experience, not just ARPU. Test cautiously, communicate transparently, and say no to anything that erodes trust. 🧠 Build for everyone, not a persona In large-scale apps, personas can be counterproductive. People learn, play, and engage for wildly different reasons. Designing for inclusivity and broad appeal helps scale from millions to billions of users without alienating key segments. 💡 Strategic and Creative Use of Ads Ads at Duolingo were introduced carefully with the goal of balancing monetization with a positive user experience. The focus is on surfacing ads at non-intrusive moments, such as after completing a lesson, and on carefully controlling ad content. Duolingo even partners with advertisers to integrate elements of Duolingo branding into third-party ads. About Cem Kansu: 🚀Chief Product Officer at Duolingo 📱 Cem Kansu is the former VP of Product at Duolingo, where he led the company’s monetization strategy, introducing ads and subscriptions that turned Duolingo into a sustainable business. With deep expertise in product development and user experience, he helped grow subscriptions to over 80% of revenue, while keeping the core product free and mission-driven. 👋 LinkedIn Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQ Episode Highlights:[0:00] Cem discusses balancing profitability with long-term goals [0:36] Duolingo’s first monetization strategy: ads [2:02] The pivot from crowdsourcing translations to new monetization models [3:49] Streak repair as Duolingo’s first in-app purchase experiment [5:43] Shifting company culture to embrace monetization [7:20] The influence of investors on Duolingo’s monetization [8:00] Introducing ads without harming user experience [10:31] Handling user complaints and data-driven adjustments [12:07] Ensuring ad quality through strict control [13:53] Direct ad partnerships to improve user experience [16:30] Ads vs subscription: monetization strategy decision [18:43] The impact of free trials on subscription growth [20:22] Evolution of Duolingo’s subscription offerings [22:39] Adding features like offline learning and ad-free experiences [24:22] Pivoting from separate apps to integrating topics in one [26:43] Overcoming design challenges to fit new topics [28:55] Duolingo’s competition with other screen time apps [32:00] Leveraging AI to enhance the language learning experience [35:18] The role of AI in Duolingo’s growth [37:32] Balancing free vs paid features for growth [40:24] Decisions on adding/removing premium features [43:35] Lessons from the failed human tutor feature [45:10] Challenges in scaling a large product like Duolingo [47:12] Long-term growth focus and user base expansion [49:30] Design, testing, and iteration at Duolingo [54:10] Ongoing improvements in learning efficacy and retention [57:15] Duolingo’s future plans and expansion goals

21 Jan

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1hr 6min
8 MAR

Why App Economy Disruption Won’t Happen As Fast As Everyone Thinks – Eric Seufert

On the podcast: why app economy disruption won't happen as fast as everyone seems to think, how AI is just as useful for defending against copycats as creating them, and why the real barrier to app success is still distribution, not code. This conversation is shorter than usual and will be featured in RevenueCat’s State of Subscription Apps report. Each episode in this series will explore one crucial topic and share actionable insights from top subscription app operators. Top Takeaways: 📲Distribution is the moat, not codeAs AI lowers the barrier to building apps, it raises the barrier to getting discovered. More software competing for attention means user acquisition becomes harder and more expensive, not easier. 🛡️Use AI to defend against copycats, not just to build fasterUse AI to scan the app store daily for copycat apps, monitor rising competitors, and track their ads. Build automated defense processes that keep you ahead of clones. 📊App economy disruption won't happen as fast as everyone thinksNo-code tools, game engines like Unity, and now vibe coding have all promised to democratize app building. None eliminated the real barriers: distribution, product intuition, and the compounding advantage of iterating on user feedback over years. About Eric Seufert: 🚀 Founder of Mobile Dev Memo, a mobile advertising and freemium monetization trade blog. 👋 LinkedIn Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights:[0:00] Introduction to Eric Seufert, Founder of Mobile Dev Memo[1:00] Why disruption in the app economy is taking longer than expected[2:00] The real barrier to app success: Distribution over code[3:15] How AI is reshaping app development and marketing[4:30] Eric’s thoughts on why AI won’t eliminate the need for great apps[5:45] Standing out in a saturated app market: How to break through[7:00] The role of customer feedback in driving growth[8:15] Why vibe coding isn’t sustainable for scalable app development[9:30] Using AI defensively against copycats in the app economy[10:45] The importance of scalable user acquisition strategies[12:00] The long-term impact of AI on app monetization[13:15] Balancing revenue and user experience in app monetization[14:30] Why building a successful app requires technical expertise and distribution[15:45] The evolving app economy and AI’s future role in scaling[17:00] Closing thoughts on staying competitive in an ever-changing market

8 Mar

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20 min
27 FEB

The Boom In Non-Game App Revenue And What's Driving It – Olivia Moore, Andreessen Horowitz

On the podcast: the tailwinds driving a boom in non-game app revenue, how vibe coding and AI workflows are fueling growth in categories that have nothing to do with AI, and why people predicting the "death of apps" have never been more wrong. This conversation is shorter than usual and will be featured in RevenueCat’s State of Subscription Apps report. Each episode in this series will explore one crucial topic and share actionable insights from top subscription app operators. Top Takeaways: 🚀 The app revenue boom isn't just about AI appsNon-game in-app purchases grew 21% year over year, but only $3.5 billion came from generative AI. Billions more flowed into short dramas, social media, utilities, entertainment, and other categories. 💰 ChatGPT helped reset what consumers will pay Pre-AI, most consumer subscriptions topped out around $60 a year. ChatGPT normalized $20 a month, and usage-based pricing is pushing some users into hundreds monthly. AI apps monetize at 2x pre-AI ARPU. 🎯 Vertical, opinionated products beat thin AI wrappers Build deep products around a specific use case bigger platforms won't prioritize. The litmus test: your product should get better, not fear for its life, when the underlying models improve. About Olivia Moore: 🚀 AI Partner at Andreessen Horowitz (a16z), a venture capital firm that backs bold entrepreneurs building the future through technology. 👋 LinkedIn 👋 @omooretweets on X Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights:[0:00] Introduction to Olivia Moore, AI Partner at Andreessen Horowitz[1:05] Olivia discusses the role of AI in transforming startup growth strategies[2:10] The importance of aligning product development with user needs and market demands[3:15] How Olivia helps portfolio companies leverage AI to scale effectively[4:25] The challenge of balancing innovation with user experience and feedback[5:50] Olivia shares insights on identifying and seizing AI-driven market opportunities[7:00] Navigating the complexities of integrating AI solutions into existing business models[8:20] The importance of long-term growth strategies over quick wins[9:35] Olivia talks about the evolving role of AI in user retention and engagement[10:40] Discussing the ethical considerations of AI implementation in growth initiatives[11:55] Olivia’s thoughts on the future of AI in the startup ecosystem[12:30] Closing thoughts on driving innovation and growth through AI

27 Feb

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18 min
18 FEB

How Skylight Balances Growth and Profit for Sustainable Success – Michael Segal & Mark Ungerer, Skylight

On the podcast, I talk with Michael and Mark about the boom in hardware-enabled subscriptions, why nothing worked until they stopped optimizing and started building a better product, and how they doubled their price to $79 even though the data said they could charge more. Top Takeaways: 📱 Hardware-enabled subscriptions need daily usage to work Devices that sit unused make subscription value harder to justify, but products that become the heartbeat of daily routines (like a family calendar) naturally create subscription demand. 🎯 Stop optimizing when you should be buildingLimited resources force careful prioritization, and sometimes the biggest wins come from building genuinely valuable features rather than running endless conversion experiments. 💰 Price based on customer emotion, not just dataTesting showed $99 would maximize revenue, but qualitative research revealed $79 felt fair while $99 approached "disgust territory," so they chose the lower price for long-term goodwill. 🏗️ Build a great product before scaling marketingSkylight tried to scale Calendar in 2021-22 but the product wasn't ready, leading to wasted marketing spend and false negatives until they focused on getting to 40+ NPS first. 🛍️ Retail partnerships are the ultimate influencerBeing in Costco and Best Buy provides a stamp of quality that can't be underestimated, and multi-channel distribution drives higher overall growth despite lower subscription attach rates in some channels. About Michael Segal & Mark Ungerer: 🚀 CEO, Skylight 📱 Michael Segal is the CEO of Skylight, a family tech company best known for its digital frames and calendars. Michael, a former venture capitalist, brings a unique perspective to Skylight’s growth strategy, focusing on balancing growth with profitability. He shares anecdotes about Skylight’s journey from hardware to subscription models, the importance of understanding customers' emotions about pricing, and how the team navigates the challenges of scaling both hardware and software. 👋 LinkedIn 🚀 CPO, Skylight 📱 Mark Ungerer is the Chief Product Officer at Skylight, where he leads product strategy, development, and design. With a keen focus on creating seamless user experiences, Mark discusses Skylight’s approach to subscriptions, how they test and refine features based on user feedback, and the key role retail partnerships play in building trust and credibility. 👋 LinkedIn Follow us on X: David Barnard - @drbarnardJacob Eiting - @jeitingRevenueCat - @RevenueCatSubClub - @SubClubHQEpisode Highlights:[0:00] The balance between growth and profit: Making decisions based on business goals[3:22] Timing the introduction of subscriptions: Skylight's early adoption and consumer reception[5:35] The hardware-enabled subscription boom: Market maturity and Skylight’s position[8:00] Unique challenges of marketing hardware-enabled subscriptions: Overcoming consumer skepticism[10:52] How Skylight integrates hardware with daily family life to drive subscription value[12:47] Pricing strategy: The magic behind Skylight’s price increase and minimal subscriber loss[17:43] Challenges in scaling growth: How Skylight navigates its multi-channel strategy[24:15] Shifting from free trials to subscription: The evolution of Skylight’s approach to testing[27:35] The importance of talking to customers: Using qualitative feedback to guide decisions[30:00] Retail partnerships as a growth strategy[33:45] Subscription dynamics: How pricing and subscription models shape Skylight’s business[36:25] Scaling with limited resources: Skylight’s approach to growth without a dedicated growth PM[38:40] Navigating hardware, software, and subscription moats[42:00] Biggest win: The success of the $79 subscription price increase[44:05] Biggest fail: Learning from free trial experiments and the need for more growth testing[46:01] Growth would be easier with more resources and strategic price adjustments for wider market reach[48:30] The importance of reducing friction in onboarding for increased conversions[52:30] The challenges of balancing customer acquisition with retention efforts[55:02] Skylight's vision for long-term customer value and growth[57:45] The impact of reducing friction in purchasing: How simple changes can dramatically increase conversion rates[59:10] Closing thoughts on growth strategy: Aiming for long-term success, not short-term wins

18 Feb

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1 hr

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